Dynamic pricing helps cut Dubai’s congestion and parking chaos: Parkin CEO

Dubai: Dubai’s experiment with dynamic parking pricing is already shifting commuter behaviour and easing congestion, according to Mohamed Abdulla Al Ali, CEO of Parkin, Dubai’s public parking operator.

Speaking on the sidelines of Gitex Global 2025, Al Ali said initial analysis since the model’s rollout in April shows roughly a 9% improvement in traffic flow across high-demand areas. The tariff, set by the Roads and Transport Authority (RTA), charges higher rates during peak hours, 8 a.m. to 10 a.m. and 4 p.m. to 8 p.m., and standard rates during off-peak periods.

“In high-demand areas, initial analysis shows about a nine per cent improvement in traffic flow,” Al Ali said. “Our goal is efficiency, fairness and quality of life, not just revenue.”

The scheme is designed to manage limited curb-side capacity by encouraging drivers to adjust their travel times, rely more on public transport, or use multi-storey facilities. Since the rollout, Parkin has updated its signage, upgraded its app to display real-time tariffs, and reclassified about 35% of its parking portfolio as premium zones, where demand is highest.

Parkin’s strategy extends well beyond pricing. “We’re not just a parking business, there’s a lot of tech behind what we do,” a company spokesperson said. Across Dubai, Parkin operates seven multi-storey car parks that now use barrier-free entry systems. Cameras automatically read number plates, link to the Parkin app and wallet, and deduct fees when a driver exits. Those without the app receive payment notifications within 48 hours.

The firm also deploys 27 AI-enabled inspection cars and about 230 human inspectors who monitor parking zones between 8 a.m. and 10 p.m. six days a week. These “smart scan” vehicles capture plate data, detect violations and help keep turnover steady in busy commercial districts.

More than half of Parkin’s transactions still come via SMS, but the company is nudging users toward its app, where payments are free and linked to value-added services such as on-demand refuelling and car washing through partners like Cafu.

Parkin manages about 190,000 public parking spaces, with additional capacity added each year under a 49-year concession with the RTA. The firm received 8,900 new public spaces last year and 4,700 more in the first half of this year. While it doesn’t own the assets, it operates them under a capital-light management model, earning revenue from public parking, developer contracts, enforcement and seasonal permits.

Al Ali said dynamic pricing is intended to change behaviour rather than boost income. “If you can travel off-peak, you should,” he noted. “The only sustainable way to manage congestion is through smarter use of existing spaces.”

As the city continues to attract more residents, Parkin plans to pair pricing intelligence with automation to ensure smoother mobility. “We see parking as part of the mobility ecosystem,” Al Ali said. “Even small pricing changes, backed by technology, can ripple across the city’s traffic flow.”